'We need to invest in our future': EU official calls for mobilization of capital

Was I think if you start with the global threats, everything else follows. Because from a European point of view, we’ve learned during COVID, this horrible illegal invasion of Ukraine by Russia, what’s happening in the Middle East that we need to look at our resilience and that we need to invest in our future. We were talking about that anyway with the green and digital transition. And it’s been interesting that that’s still being talked about here, different views on it, But from a European point of view, what that requires is that we mobilize capital. So a big project for us for some time is capital markets union. We have fragmented capital markets and we need to strengthen them. It also means we need to bring citizens to the conversation. So we’re great savers in Europe, but we don’t always invest. So in order for us to build resilience, to have a sustainable economy and society, we need to mobilize private investment because the public purse is not enough. So a lot of my conversations are around that big theme. But we’re also talking about fintechs, digitalization of finance. We’re talking about the digital euro. And these meetings are an opportunity to hear what’s the latest, what are the sentiments. And I suppose sentiment is the big topic because sentiment drives everything. It drives confidence. And really when you look at the world we live in, we’ve had so many big difficult challenges to deal with including the ultimate which is climate change that sentiments can depress the mood. And I think in Europe there’s quite a a lot of anxiety. You know we have gross but it’s not as strong as the US We’ve had interest rate inflation issues. We’re hoping that the coming months that we will see a change in that and that there will be perhaps rate reductions and that we will mobilise this capital we need to get investments going. Let me pick up on that point around CMU Capital Markets Union. There is a look that everybody gives me when I ask about it, the most agreement has. Why hasn’t that happened? Why is it taking so long? Where are we at in terms of progress? Because it feels as that integration is required now more than ever before because of what we’re seeing globally. Well, good that you say that because it’s now more urgent than ever before. And usually, you know, Europe moves slowly sometimes and there’s lots of good reasons why we move slowly. We’re 27 member states, different legal systems, different emotional issues around finance, but ultimately we now have an agreement on a common goal. I think the leaders who’ve met this weekend, Brussels discussed many topics, but they did focus on capital markets. How do we mobilize this finance? And they’re talking exactly as we are today about getting investors, both retail investors, the corporate world looking at different ways to finance other than bank finance. Why are we’re asking questions of ourselves? We have a lot of really good startups in Europe, but they go to the US to scale up. So you can look at this as a real problem for Europe or a potential opportunity. And the fact that it has taken so long is not a surprise to me. I’ve been in my role for a number of years now. There will be a new Commission coming in. This is the ideal opportunity to provide, if you like a a statement of what you need to do now and and what we really need and what we’re hearing is a leadership at the very highest level, because things only happen when leaders say they have to. But I’ll also be very open. There will be resistance. There is resistance because ultimately nobody likes change. They might like the ideal that we’re trying to work towards, but perhaps not want to move the system that they currently work with. So it’s our role as a Commission and we hope will be supported not just by this Parliament, but the next European Parliament to say that it is in the European interest that we move and we move with urgency, unlock the potential of the money that’s there to produce the finance for our sustainability goals. We have strong targets on climate, on biodiversity, but also in Europe. And I think I hear it, hear us more strongly, we have concerns among sectors of our society, our farmers, our SMEs, are worried about this change. If we don’t say to them, look, there is money there to fund these changes, then they are likely to pull back further. So for many reasons, urgency is here and now, and I hope we can deliver. You felt as though we required the effort to pen a letter to Mario Draghi to talk about some of these risks. And Mario Draghi this week has been talking about the global playing field and that the US and China are not playing by global rules anymore. As Europe looks inward and tries to fix its problems, isn’t the reality that no matter what it does, it’s still up against two super economic powers that are now playing a different game and the the changes we’re talking about is not going to fix anything? Well, I think, I hope no one is playing games here because I think the world is at a very difficult moment. But you’re right to say that Europe is, is between, if you like, the US, there’s China, there’s Russia, there are many things that go on around us. I hope that there isn’t an impression that we just look inwards. I think Europe has always looked outwards. We’ve tried to give leadership in my own member state. Europe has helped around peace process. So I think that Europe has has the right ideals but think today we’re less naive. I think we’ve realised and we need to look at our vulnerabilities on energy was absolutely clear. We were relying on an unreliable partner. In terms of the of China, the President of the Commissioners of underline is very clear. We de risk not decouple. We have to have a relationship, but we need to understand what that relationship is with the US For example, on things like sanctions and our view on on Russia, on solidarity with Ukraine, we are really strong. So I think that we work with our global partners in ways that do good not just from a European perspective but also for the for the world as it is today. We’re hearing only about some challenges the world has and there are many other.